Prohibition of Benami Property Transactions Act, 1988

Section 29: Possession of Confiscated Benami Property

Section 29 of the Prohibition of Benami Property Transactions Act, 1988 deals with the stage at which possession of property is taken after an order of confiscation has been made under Section 27(1). It sets out the Administrator's duty to take possession, the notice procedure for surrender of possession, and the power to seek police assistance if possession is not delivered voluntarily or immediate possession is considered necessary.

Key points under Section 29

Section 29 operates after an order of confiscation under Section 27(1).
The Administrator must proceed to take possession of the confiscated property.
A person in possession may be directed by written notice to surrender or deliver possession within seven days of service of the notice.
If the direction is not obeyed, or immediate possession is warranted, the Administrator may requisition police assistance to take possession.

Current law and statutory context

The 2016 amendment substantially changed the earlier Benami Transactions (Prohibition) Act, 1988 and the law is now titled the Prohibition of Benami Property Transactions Act, 1988. Section 29 appears in Chapter IV, which deals with attachment, adjudication and confiscation of benami property.

Section 29 should therefore be read together with Section 27, which concerns confiscation and vesting, and Section 28, which deals with management of confiscated properties.

Section 29 - Possession of the property

Section 29(1): Where an order of confiscation in respect of a property under Section 27(1) has been made, the Administrator shall proceed to take possession of that property.

Section 29(2)(a): The Administrator may issue a written notice directing a person in possession of the benami property to surrender or deliver possession within seven days from service of the notice, either to the Administrator or to a person duly authorised by the Administrator in writing.

Section 29(2)(b): If the direction is not complied with, or if immediate possession is considered necessary, the Administrator may requisition the services of a police officer for forcibly taking possession, and the police officer is required to comply with that requisition.

Meaning of important legal expressions

Administrator

For the purposes of confiscated property, the Administrator is the authority empowered under the Act to receive, manage and take possession of property after confiscation. Section 28 provides the statutory setting for management of property that has been confiscated.

Benami property

The Act defines benami property by reference to property that is the subject matter of a benami transaction and also includes the proceeds from such property. Whether property is benami depends on the definitions and exclusions contained in Section 2 of the Act.

Confiscation under Section 27

Section 29 does not independently determine whether property is benami. It becomes relevant after the competent authority has made an order of confiscation under Section 27(1). The possession process under Section 29 is therefore consequential to the confiscation order.

How the possession process works

Once confiscation has been ordered, the Administrator proceeds to take possession. Where another person is physically occupying or controlling the property, the normal statutory route is a written notice requiring surrender or delivery of possession within seven days from service of that notice.

If the notice is not obeyed, Section 29(2)(b) permits the Administrator to seek police assistance for taking possession. The same clause also addresses situations where, in the Administrator's opinion, immediate possession is warranted. This provision enables enforcement of the confiscation order and prevents continued possession from frustrating the statutory scheme.

Practical reading: Section 29 is an enforcement provision. It concerns taking possession after confiscation; it is not the provision under which the original finding of a benami transaction or the confiscation itself is made.

Related provisions

Readers dealing with attachment, adjudication, confiscation and possession should also refer to Section 24 - Notice and attachment of property involved in benami transaction, Section 25 - Manner of service of notice, Section 26 - Adjudication of benami property, Section 27 - Confiscation and vesting, and Section 28 - Management of properties confiscated.

Official legal sources

For the latest authoritative statutory text, consult the Government of India sources linked in the sidebar. The official India Code version should be preferred for checking the current wording of the Act and later amendments.